Lenovo, looking to revitalize its PC business and retake the global No. 1 sales position it has lost to HP, is acquiring a controlling interest in Fujitsu’s computer business.

The deal, which was disclosed early Thursday, gives Lenovo a 51 percent ownership in a joint venture the firms plan to establish.

Lenovo is paying $157 million in the deal as well as as much as another $112 million in sales-based incentives through 2020.

The joint venture will be called Fujitsu Client Computing Ltd (FCCL).

The deal was announced just as Lenovo also reported a profitable quarter in its latest earnings report.

“Strategic collaboration”

In a joint statement, the companies noted:

“Through this strategic collaboration, Fujitsu and Lenovo aim to drive further growth, scale and competitiveness in the PC businesses both in Japan and worldwide. The JV will leverage Fujitsu’s capabilities in global sales, customer support, R&D, highly-automated and efficient manufacturing and systems integration that meet customers’ demand. Furthermore, it will benefit from Lenovo’s global scale and presence.

“Through investment in JV, DBJ will support FCCL’s sustainable growth and provide financial expertise from the perspective of a financial institution.

“Fujitsu will continue to offer a high-quality, innovative, secure, and reliable Fujitsu branded CCD portfolio to its corporate customers worldwide, contributing to their digital transformation journey, and co-creating the workplace of the future by integrating PC offerings with Technology Solutions.”

Talks took months

Lenovo and Fujitsu have been in discussions for months about a possible deal.

HP regained the world’s No. 1 PC spot from Lenovo earlier this year.

The Development Bank of Japan also is part of the deal, controlling 5 percent of the joint venture.

The deal is expected to close in early 2018.

Kuniaki Saito, the current “representative director and president” of Fujitsu’s PC business, will remain head of the new venture.

Howver, tech news site The Register, downplays the significance of the deal.

“In reality, Fujitsu was relegated to the sidelines of the global PC sales battle ever since the Japanese firm bought out Siemens’ stake in the joint venture they formed in the ’90s, and started to clip back in consumer portfolio outside of Japan. It doesn’t rank in the top five biggest sellers of PC tin and hasn’t for years,” The Register reported.